HOUSE FILE 262

BY  HELLAND

A BILL FOR

An Act concerning mechanics’ liens including the establishment of a state construction registry for residential construction property and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 207.23, subsection 1, Code 2011, is amended to read as follows:
   1.  Within six months after the completion of a project to restore, reclaim, abate, control, or prevent adverse effects of past coal mining practices on privately owned land, the division shall itemize the money expended on the project and may file a lien statementin the manner provided in section 572.8 in the office of the district court clerk of each county in which a portion of the property affected by the project is located, together with a notarized appraisal by an independent appraiser of the value of the land before the restoration, reclamation, abatement, control, or prevention of adverse effects of past mining practices if the money so expended results in a significant increase in property value. A copy of the lien statement and the appraisal, if required, shall be served upon affected property owners in the manner provided for service of an original notice. The lien shall not exceed the amount determined by the appraiser to be the increase in the market value of the land as a result of the restoration, reclamation, abatement, control, or prevention of adverse effects of past coal mining practices. A lien shall not be filed in accordance with this subsection against the property of a person who owned the surface prior to May 2, 1977, and who neither consented to, participated in, nor exercised control over the mining operation which necessitated the reclamation performed.
   Sec. 2.  Section 572.1, Code 2011, is amended to read as follows:
   572.1  Definitions and rules of construction.
   For the purpose of this chapter:
   1.  “Administrator” means the secretary of state.
   1.  2.  “Building” shall be construed as if followed by the words “erection, or other improvement upon land”.
   3.  “General contractor” includes every person who does work or furnishes materials by contract, express or implied, with an owner. “General contractor” does not include a person who does work or furnishes materials on contract with an owner-builder.
   2.  4.  “Labor” means labor completed by the claimant.
   3.  5.  “Material”shall, in addition to its ordinary meaning, include includes machinery, tools, fixtures, trees, evergreens, vines, plants, shrubs, tubers, bulbs, hedges, bushes, sod, soil, dirt, mulch, peat, fertilizer, fence wire, fence material, fence posts, tile, and the use of forms, accessories, and equipment furnished by the claimant.
   4.  6.  “Owner” means the record legal or equitable titleholder and every person for whose use or benefit any building, erection, or other improvement is made, having the capacity to contract, including guardians or record.
   5.  “Owner-occupied dwelling” means the homestead of an owner, as defined in section 561.1, and without respect to the value limitations in section 561.3, and actually occupied by the owner or the spouse of the owner, or both.“Owner-occupied dwelling” includes a newly constructed dwelling to be occupied by the owner as a homestead, or a dwelling that is under construction and being built by or for an owner who will occupy the dwelling as a homestead.
   7.  “Owner-builder” means the legal or equitable titleholder of record who furnishes material for or performs labor upon a building, erection, or other improvement, or who contracts with a subcontractor to furnish material for or perform labor upon a building, erection, or other improvement and who offers or intends to offer to sell the owner-builder’s property without occupying or using the structures, properties, developments, or improvements for a period of more than one year from the date the structure, property, development, or improvement is substantially completed or abandoned.
   8.  “Residential construction” means construction on single-family or two-family dwellings occupied or used, or intended to be occupied or used, primarily for residential purposes, and includes real property pursuant to chapter 499B.
   9.  “State construction registry” means a centralized computer database maintained and posted on the internet by the administrator that provides a central repository for the submission and management of preliminary notices, notices of commencement of work, and mechanics’ liens on all residential construction properties.
   10.  “State construction registry number” means a number provided by the administrator for all residential construction properties posted to the state construction registry.
   6.  11.  “Subcontractor”shall include includes every person furnishing material or performing labor upon any building, erection, or other improvement, except those having contracts directly with the owner.  “Subcontractor” shall include those persons having contracts directly with an owner-builder.
   Sec. 3.  Section 572.2, Code 2011, is amended to read as follows:
   572.2  Persons entitled to lien.
   1.  Every person who shall furnish furnishes any material or labor for, or perform performs any labor upon, any building or land for improvement, alteration, or repair thereof, including those engaged in the construction or repair of any work of internal or external improvement, and those engaged in grading, sodding, installing nursery stock, landscaping, sidewalk building, fencing on any land or lot, by virtue of any contract with the owner, owner-builder, general contractor, or subcontractor shall have a lien upon such building or improvement, and land belonging to the owner on which the same is situated or upon the land or lot so graded, landscaped, fenced, or otherwise improved, altered, or repaired, to secure payment for the material or labor furnished or labor performed. 
   2.  If material is rented by a person to the owner, general contractor, or subcontractor, the person shall have a lien upon such building, improvement, or land to secure payment for the material rental. The lien is for the reasonable rental value during the period of actual use of the material and any reasonable periods of nonuse of the material taken into account in the rental agreement. The delivery of material to such building, improvement, or land, whether or not delivery is made by the person, creates a presumption that the material was used in the course of alteration, construction, or repair of the building, improvement, or land. However, this presumption shall not pertain to recoveries sought under a surety bond.
   3.  An owner-builder is not entitled to a lien under this chapter as to work the owner-builder performs, or is contractually obligated to perform, prior to transferring title to the buyer.
   Sec. 4.  Section 572.8, Code 2011, is amended to read as follows:
   572.8  Perfection of lien.
   1.  A person shall perfect a mechanic’s lien by filing with the clerk of the district court of the county in which the building, land, or improvement to be charged with the lien is situated posting to the state construction registry internet website or submitting to the administrator by United States mail or facsimile transmission a verified statement of account of the demand due the person, after allowing all credits, setting forth:
   a.  The date when such material was first furnished or labor first performed, and the date on which the last of the material was furnished or the last of the labor was performed.
   b.  The legal description of the property to be charged with the lien.
   c.  The name and last known mailing address of the owner of the property.
   d.  The address of the property or a description of the location of the property.
   2.  Upon the filing perfection of the lien, the clerk of court administrator shall mail a copy of the lien to the owner. If the statement of the lien consists of more than one page, the clerk administrator may omit such pages as consist solely of an accounting of the material furnished or labor performed. In this case, the clerk administrator shall attach a notification that pages of accounting were omitted and may be inspected in the clerk’s office on the state construction registry internet website.
   Sec. 5.  Section 572.9, Code 2011, is amended to read as follows:
   572.9  Time of filing perfection.
   The statement of account required by section 572.8 shall be filed perfected by a principal general contractor or subcontractor within two years and ninety days after the date on which the last of the material was furnished or the last of the labor was performed.
   Sec. 6.  Section 572.10, Code 2011, is amended to read as follows:
   572.10  Perfecting lien after lapse of ninety days.
   A general contractor or a subcontractor may perfect a mechanic’s lien pursuant to section 572.8 beyond ninety days after the date on which the last of the material was furnished or the last of the labor was performed by filing a claim with the clerk of the district court and giving written notice thereof to the owner. Such notice may be served by any person in the manner original notices are required to be served. If the party to be served is out of the county wherein the property is situated, a return of that fact by the person charged with making such service shall constitute sufficient service from and after the time it was filed with the clerk of the district court perfected pursuant to section 572.8.
   Sec. 7.  Section 572.11, Code 2011, is amended to read as follows:
   572.11  Extent of lien filed perfected after ninety days.
   Liens perfected under section 572.10 shall be enforced against the property or upon the bond, if given, by the owner or owner-builder, only to the extent of the balance due from the owner to the general contractor or owner-builder at the time of the service of such notice; but if the bond was given by the general contractor or owner-builder, or person contracting with the subcontractor filing the claim for a lien, such bond shall be enforced to the full extent of the amount found due the subcontractor.
   Sec. 8.  Section 572.13, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   572.13  General contractor —— owner notice —— residential construction.  
   1.  A general contractor who has contracted or will contract with a subcontractor to provide labor or furnish material for the property shall provide the owner with the following owner notice in writing in boldface type of a minimum size of ten points:
  “Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the improved property if they are not paid for their contributions, even if the parties have no direct contractual relationship with the owner. The state construction registry provides a listing of all persons or companies furnishing labor or materials who have filed a lien or who may file a lien upon the improved property. If the person or company has posted its notice or lien to the state construction registry, you may be required to pay the person or company even if you have paid the general contractor the full amount due. Therefore, check the state construction registry internet website for information about the property including persons or companies furnishing labor or materials before paying your general contractor. In addition, when making payment to your general contractor, it is important to obtain lien waivers from your general contractor and from persons or companies furnishing labor or materials to your property. The information in the state construction registry is posted on the internet website of the state construction registry.”
   2.  The notice described in subsection 1 shall also contain the internet website address and toll-free telephone number of the state construction registry.
   3.  A general contractor who fails to provide notice pursuant to this section is not entitled to a lien and remedy provided by this chapter.
   4.  This section applies only to residential construction properties.
   Sec. 9.  NEW SECTION.  572.13A  Notice of commencement of work —— general contractor —— owner-builder.
   1.  A general contractor or owner-builder shall submit a notice of commencement of work to the administrator or post a notice of commencement of work to the state construction registry internet website within ten days of commencement of work on the property. A notice of commencement of work is effective only as to any labor, service, equipment, or material furnished to the property subsequent to the posting of the notice of commencement of work. A notice of commencement of work shall include all of the following information:
   a.  The name and address of the property owner.
   b.  The name and address of the general contractor or owner-builder.
   c.  The address of the property if the property can be reasonably identified by an address or the name and a general description of the location of the property if the property cannot be reasonably identified by an address.
   d.  A legal description of the property.
   e.  The date work commenced.
   f.  Any other information prescribed by the administrator pursuant to rule.
   2.  If a general contractor or owner-builder fails to submit a notice of commencement of work to the administrator or fails to post the required notice of commencement of work to the state construction registry internet website pursuant to subsection 1, within ten days of commencement of the work on the property, a subcontractor may submit or post the notice in conjunction with the filing of the required preliminary notice pursuant to section 572.13B.
   3.  At the time a notice of commencement of work is posted on the state construction registry internet website, the administrator shall send a copy of the owner notice described in section 572.13 along with other relevant information to the owner and to the property address, addressed to “owner”, as prescribed by the administrator pursuant to rule.
   4.  A general contractor who fails to provide notice pursuant to this section is not entitled to a lien and remedy provided by this chapter.
   5.  This section applies only to residential construction properties.
   Sec. 10.  NEW SECTION.  572.13B  Preliminary notice —— subcontractor —— residential construction.
   1.  A subcontractor shall submit a preliminary notice to the administrator or post a preliminary notice to the state construction registry internet website. A preliminary notice posted prior to the balance paid to the general contractor or owner-builder by the owner is effective as to all labor, service, equipment, and material furnished to the property by the subcontractor. The preliminary notice shall contain all of the following information:
   a.  The name of the owner.
   b.  The state construction registry number.
   c.  The name, address, and telephone number of the subcontractor furnishing the labor, service, equipment, or material.
   d.  The name and address of the person who contracted with the claimant for the furnishing of the labor, service, equipment, or material.
   e.  The name of the general contractor or owner-builder under which the claimant is performing or will perform the work.
   f.  The address of the property or a description of the location of the property.
   g.  Any other information required by the administrator pursuant to rule.
   2.  A mechanic’s lien perfected under this chapter is enforceable only to the extent of the balance due the general contractor or owner-builder prior to the posting of a preliminary notice specified in subsection 1.
   3.  At the time a preliminary notice is posted to the state construction registry, the administrator shall send notification to the owner as prescribed by the administrator pursuant to rule, including the owner notice described in section 572.13, subsection 1. Notices under this section will not be sent to owner-builders.
   4.  A subcontractor who fails to submit or post a preliminary notice pursuant to this section shall not be entitled to a lien and remedy provided under this chapter.
   5.  This section applies only to residential construction properties.
   Sec. 11.  Section 572.14, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   572.14  Liability to subcontractor after payment to general contractor or owner-builder.  
   Except as provided in section 572.13B, payment to the general contractor or owner-builder by the owner of any part or all of the contract price of the building or improvement within ninety days after the date on which the last of the materials was furnished or the last of the labor was performed by a subcontractor, does not relieve the owner from liability to the subcontractor for the full value of any material furnished or labor performed upon the building, land, or improvement if the subcontractor perfects a lien within ninety days after the date on which the last of the materials was furnished or the last of the labor was performed.
   Sec. 12.  Section 572.15, Code 2011, is amended to read as follows:
   572.15  Discharge of subcontractor’s mechanic’s lien —— bond.
   A mechanic’s lien may be discharged at any time by the owner, principal contractor, or intermediate subcontractor filing with the clerk of the district court of the county in which the property is located submitting a bond to the administrator in twice the amount of the sum for which the claim for the lien is filed, with surety or sureties, to be approved by the clerk administrator, conditioned for the payment of any sum for which the claimant may obtain judgment upon the claim.
   Sec. 13.  Section 572.16, Code 2011, is amended to read as follows:
   572.16  Rule of construction.
   Nothing in this chapter shall be construed to require the owner to pay a greater amount or at an earlier date than is provided in the owner’s contract with the principal general contractor, unless said the owner pays a part or all of the contract price to the original general contractor before the expiration of the ninety days allowed by law for the filing perfection of a mechanic’s lien by a subcontractor; provided that in the case of an owner-occupied dwelling residential construction, nothing in this chapter shall be construed to require the owner to pay a greater amount or at an earlier date than is provided in the owner’s contract with the principal general contractor, unless the owner pays a part or all of the contract price to the principal general contractor after receipt of notice under section 572.14, subsection 2 a preliminary notice has been posted to the state construction registry internet website pursuant to section 572.13B.
   Sec. 14.  Section 572.17, Code 2011, is amended to read as follows:
   572.17  Priority of mechanics’ liens between mechanics.
   Mechanics’ liens shall have priority over each other in the order of the filing submission of the statements or of accounts as herein provided in section 572.8.
   Sec. 15.  Section 572.18, subsections 1 and 3, Code 2011, are amended to read as follows:
   1.  Mechanics’ liens filed perfected by a principal general contractor or subcontractor within ninety days after the date on which the last of the material was furnished or the last of the claimant’s labor was performed and for which notices were properly submitted or posted to the state construction registry internet website pursuant to sections 572.13A and 572.13B shall be superior to all other liens which may attach to or upon a building or improvement and to the land upon which it is situated, except liens of record prior to the time of the original commencement of the claimant’s work or the claimant’s improvements, except as provided in subsection 2.
   3.  The rights of purchasers, encumbrancers, and other persons who acquire interests in good faith, for a valuable consideration, and without notice of a lien perfected pursuant to this chapter, are superior to the claims of all general contractors or subcontractors who have perfected their liens more than ninety days after the date on which the last of the claimant’s material was furnished or the last of the claimant’s labor was performed.
   Sec. 16.  Section 572.22, Code 2011, is amended to read as follows:
   572.22  Record of claim.
   The clerk of the court administrator shall endorse upon every claim for a mechanic’s lien filed in the clerk’s office posted to the state construction registry internet website or submitted to the administrator through United States mail the date and hour of filing and make an abstract thereof in the mechanic’s lien book kept for that purpose. Said book Each claim shall be properly indexed and shall contain the following items concerning each claim:
   1.  The name of the person by whom filed.
   2.  The date and hour of filing.
   3.  The amount thereof.
   4.  The name of the person against whom filed.
   5.  The legal description of the property to be charged therewith.
   6.  The tax parcel identification number of the property to be charged.
   Sec. 17.  Section 572.23, Code 2011, is amended to read as follows:
   572.23  Acknowledgment of satisfaction of claim.
   1.  When a mechanic’s lien is satisfied by payment of the claim, the claimant shall acknowledge satisfaction thereofupon the mechanic’s lien book, or otherwise in writing, and, if the claimant neglects to do so for thirty days after demand in writing is personally served upon the claimant, the claimant shall forfeit and pay twenty-five dollars to the owner or, general contractor, or owner-builder and be liable to any person injured to the extent of the injury.
   2.  Ifacknowledgment of satisfaction is not filed acknowledged within thirty days after service of the demand in writing, the party serving the demand or causing the demand to be served may file for record with the clerk of the district court administrator a copy of the demand with proofs of service attached and endorsed and, in case of service by publication, a personal affidavit that personal service could not be made within this state. Upon completion of the requirements of this subsection, the record shall be constructive notice to all parties of the due forfeiture and cancellation of the lien. Upon the filing of the demand with the required attachments, the clerk of the district court administrator shall mail a file-stamped copy of the demand to both parties.
   Sec. 18.  Section 572.30, Code 2011, is amended to read as follows:
   572.30  Action by subcontractor or owner against general contractor or owner-builder.
   Unless otherwise agreed, a principal general contractor or owner-builder who engages a subcontractor to supply labor or materials or both for improvements, alterations or repairs to a specific owner-occupied dwelling residential construction property shall pay the subcontractor in full for all labor and materials supplied within thirty days after the date the principal general contractor or owner-builder receives full payment from the owner. If a principal general contractor or owner-builder fails without due cause to pay a subcontractor as required by this section, the subcontractor, or the owner by subrogation, may commence an action against the general contractor or owner-builder to recover the amount due. Prior to commencing an action to recover the amount due, a subcontractor, or the owner by subrogation, shall give notice of nonpayment of the cost of labor or materials to the principal general contractor or owner-builder paid for the improvement. Notice of nonpayment must be in writing, delivered in a reasonable manner, and in terms that reasonably identify the real estate improved and the nonpayment complained of. In an action to recover the amount due a subcontractor, or the owner by subrogation, under this section, the court in addition to actual damages, shall award a successful plaintiff exemplary damages against the general contractor or owner-builder in an amount not less than one percent and not exceeding fifteen percent of the amount due the subcontractor, or the owner by subrogation, for the labor and materials supplied, unless the principal general contractor or owner-builder does one or both of the following, in which case no exemplary damages shall be awarded:
   1.  Establishes that all proceeds received from the person making the payment have been applied to the cost of labor or material furnished for the improvement.
   2.  Within fifteen days after receiving notice of nonpayment the principal general contractor or owner-builder gives a bond or makes a deposit with the clerk of the district court administrator, in an amount not less than the amount necessary to satisfy the nonpayment for which notice has been given under this section, and in a form approved by a judge of the district court, to hold harmless the owner or person having the improvement made from any claim for payment of anyone furnishing labor or material for the improvement, other than the principal general contractor or owner-builder.
   Sec. 19.  Section 572.31, Code 2011, is amended to read as follows:
   572.31  Cooperative and condominium housing.
   A lien arising under this chapter as a result of the construction of an apartment house or apartment building which is owned on a cooperative basis under chapter 499A, or which is submitted to a horizontal property regime under chapter 499B, is not enforceable, notwithstanding any contrary provision of this chapter, as against the interests of an owner in an owner-occupied dwelling a unit contained in the apartment house or apartment building acquired in good faith and for valuable consideration, unless a lien statement specifically describing the dwelling unit is filed under section 572.8 within the applicable time period specified in section 572.9, but determined from the date on which the last of the material was supplied or the last of the labor was performed in the construction of that dwelling unit.
   Sec. 20.  Section 572.32, Code 2011, is amended to read as follows:
   572.32  Attorney fees —— remedies.
   1.  In a court action to enforce a mechanic’s lien,if the plaintiff furnished labor or materials directly to the defendant, a prevailing plaintiff may be awarded reasonable attorney fees.
   2.  In a court action to challenge a mechanic’s lien filed on an owner-occupied dwelling a residential construction property, if the person challenging the lien prevails, the court may award reasonable attorney fees and actual damages. If the court determines that the mechanic’s lien was filed in bad faith or the supporting affidavit was materially false, the court shall award the owner reasonable attorney fees plus an amount not less than five hundred dollars or the amount of the lien, whichever is less.
   Sec. 21.  Section 572.33, Code 2011, is amended to read as follows:
   572.33  Requirement of notification for commercial construction.
   1.  The notification requirements in this section apply only to commercial construction.
   1.  2.  A person furnishing labor or materials to a subcontractor shall not be entitled to a lien under this chapter unless the person furnishing labor or materials does all of the following:
   a.  Notifies the principal general contractor or owner-builder in writing with a one-time notice containing the name, mailing address, and telephone number of the person furnishing the labor or materials, and the name of the subcontractor to whom the labor or materials were furnished, within thirty days of first furnishing labor or materials for which a lien claim may be made. Additional labor or materials furnished by the same person to the same subcontractor for use in the same construction project shall be covered by this notice.
   b.  Supports the lien claim with a certified statement that the principal general contractor or owner-builder was notified in writing with a one-time notice containing the name, mailing address, and telephone number of the person furnishing the labor or materials, and the name of the subcontractor to whom the labor or materials were furnished, within thirty days after the labor or materials were first furnished, pursuant to paragraph “a”.
   2.  This section shall not apply to a mechanic’s lien on single-family or two-family dwellings occupied or used or intended to be occupied or used for residential purposes.
   3.  Notwithstanding other provisions of this chapter, a principal general contractor or owner-builder shall not be prohibited from requesting information from a subcontractor or a person furnishing labor or materials to a subcontractor regarding payments made or payments to be made to a person furnishing labor or materials to a subcontractor.
   Sec. 22.  NEW SECTION.  572.33A  Liability of owner to general contractor —— commercial construction.
   An owner of a building, land, or improvement upon which a mechanic’s lien of a subcontractor may be filed, is not required to pay the general contractor for compensation for work done or material furnished for the building, land, or improvement until the expiration of ninety days after the completion of the building or improvement unless the general contractor furnishes to the owner one of the following:
   1.  Receipts and waivers of claims for mechanics’ liens, signed by all persons who furnished material or performed labor for the building, land, or improvement.
   2.  A good and sufficient bond to be approved by the owner, conditioned that the owner shall be held harmless from any loss which the owner may sustain by reason of the filing of mechanics’ liens by subcontractors.
   Sec. 23.  NEW SECTION.  572.34  State construction registry —— residential construction.
   1.  A state construction registry is created and shall be administered by the administrator. The administrator shall adopt rules pursuant to chapter 17A for the creation and administration of the registry.
   2.  The state construction registry shall be accessible to the general public through the administrator’s internet website.
   3.  The registry shall be indexed by owner name, general contractor name, state construction registry number, property address, legal description, tax parcel identification number, and any other identifier considered appropriate as determined by the administrator.
   4.  A general contractor, owner-builder, or subcontractor who posts fictitious, forged, or false information to the state construction registry shall be subject to a penalty as determined by the administrator by rule in addition to all other penalties and remedies available under applicable law.
   5.  A person may post a correction statement with respect to a record indexed in the state construction registry internet website if the person believes the record is inaccurate or wrongfully posted.
   6.  The administrator shall charge and collect fees as established by rule necessary for the administration and maintenance of the registry and the registry’s internet website. The administrator shall not charge a filing fee for a preliminary notice required pursuant to this chapter that exceeds the cost of sending such notice by certified mail with restricted delivery and return receipt. The administrator shall not charge a filing fee for a mechanics’ lien that exceeds forty dollars.
   7.  Notices may be posted to the state construction registry electronically on the administrator’s internet website, or may be sent to the administrator by United States mail or facsimile transmission.
   8. The administrator shall send a receipt acknowledging a notice submitted by United States mail or facsimile transmission, as provided by the administrator by rule.
   9.  Information collected by and furnished to the administrator in conjunction with the submission and posting of notices pursuant to sections 572.13A and 572.13B shall be used by the administrator solely for the purposes of the state construction registry.
   Sec. 24.  Section 602.8102, subsection 82, Code 2011, is amended to read as follows:
   82.  Carry out duties relating to liens as provided in chapters 249A,572, 574, 580, 582, and 584.
   Sec. 25.  EFFECTIVE DATE.  This Act takes effect January 1, 2013.
EXPLANATION
   This bill relates to mechanics’ liens including the establishment of a state construction registry for residential construction property and provides an effective date.
   The bill changes all references to “principal contractor” and “contractor” to “general contractor”, defined in the bill to mean a person who does work or furnishes materials by contract, express or implied, with an owner. “General contractor” does not include a person who does work or furnishes materials on contract with an owner-builder.
   The bill defines “owner-builder” as the legal or equitable titleholder who furnishes material or performs labor upon a building, erection, or other improvement, or who contracts with a subcontractor to furnish material or perform labor upon a building, erection, or other improvement and who offers or intends to offer to sell the owner-builder’s property without occupying or using the structures, properties, developments, or improvements for more than one year from the date the structure, property, development, or improvement is substantially completed or abandoned. The bill extends provisions currently in the Code for general contractors to owner-builders. These provisions relate to perfecting a lien, the acknowledgment of a lien that has been satisfied by payment of a claim, actions by subcontractors or owners to recover amounts due, and certain notification requirements. The bill also extends provisions for general contractors relating to notification requirements for commercial construction to owner-builders.
   The bill provides for the perfection of a mechanic’s lien by posting a verified statement of account to the state construction registry internet website or submitting to the administrator of the registry (the secretary of state), rather than by filing such statement with the district court. The bill provides that a person who intends to perfect a mechanic’s lien shall include the address of the property or a description of the location of the property in the person’s verified statement.
   The bill provides that a general contractor who has contracted or will contract with a subcontractor to provide labor or furnish material for the property shall provide the owner with an owner notice stating that persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the improved property if they are not paid, even if the parties have no direct contractual relationship with the owner. The notice shall also provide information relating to the availability of information posted on the state construction registry established by the bill. A general contractor who fails to provide such notice to the owner is not entitled to a mechanic’s lien and remedies pursuant to Code chapter 572.
   The bill provides that a general contractor or owner-builder shall submit a notice of commencement of work to the administrator or post a notice of commencement of work, including certain specific information, to the state construction registry internet website.
   The bill requires a subcontractor to submit a preliminary notice to the administrator or post a preliminary notice, including certain specific information, to the state construction registry internet website. A preliminary notice received by the administrator or posted prior to the balance paid to the general contractor or owner-builder by the owner is effective as to all labor, service, equipment, or material furnished to the property subsequent to the posting of the notice of commencement of work. A subcontractor who fails to submit or post a preliminary notice shall not be entitled to a lien and remedy provided under Code chapter 572.
   The bill provides that the provisions relating to the requirement that a general contractor and a subcontractor post notices to the state construction registry apply only to residential construction properties.
   The bill provides that payment to the general contractor or owner-builder by the owner of any part or all of the contract price of the building or improvement within 90 days after the date on which the last of the materials was furnished or the last of the labor was performed by a subcontractor, does not relieve the owner from liability to the subcontractor for the full value of any material furnished or labor performed upon the building, land, or improvement if the subcontractor files a lien within 90 days after the date on which the last of the materials was furnished or the last of the labor was performed.
   The bill provides for the creation of a state construction registry for residential construction property for the posting of notices by general contractors, owner-builders, and subcontractors which such persons must post in order to protect their lien rights. The state construction registry, once created, shall be a publicly accessible centralized electronic database created and maintained by the administrator. The administrator shall adopt rules pursuant to Code chapter 17A for the creation and administration of the registry. The registry provides a centralized resource of all persons or companies furnishing labor or materials who may file a lien upon the improved property. Data collected by and furnished to the administrator in conjunction with the submission and posting of notices to the state construction registry internet website shall be used by the administrator for the purposes of the registry.
   The bill eliminates the requirement that the clerk of court make an abstract of a claim for a mechanic’s lien and requires the administrator to record the date and hour of filing of a claim for a mechanic’s lien and to index every claim.
   The bill takes effect January 1, 2013.